ODC plot thickens

MORE than half of the close to N$100 million used by the Offshore Development Corporation (ODC) to make a series of dubious investments with a Botswana-registered company came from its embattled sister company, the Namibia Development Corporation (NDC).NDC and ODC CEO Abdool Aboobakar has been out of reach ever since the story hit the headlines more than a month ago.

THE NDC’S N$55 MILLION However, more information emerged this week about the NDC’s placement of funds with the ODC.Although the ODC never returned the NDC’s money, it paid all the interest due to it until the end of July 2004.The greatest chunk of money the NDC invested was N$16,5 million, which was trans-ferred to the ODC in January last year.Around N$15,7 million of the total amount of N$55,372 million the NDC invested through the ODC came from actual NDC resources.Millions more of the money invested were funds destined for the development of Industrial Parks and for Small and Medium Enterprise projects.The Namibian understands that, as part of its mandate, the NDC was required to invest funds it received from the Ministry of Trade for short terms only and not offshore – so that the funds would be easily available to use for their intended purpose.A source indicated that investment decisions were largely made by the Finance Manager and the Managing Director.Another well-placed source said the NDC and ODC entered into an agreement on the investment, and that the ODC had pledged to guarantee the capital and the interest.It remains unclear whether all the members of the NDC board and management knew from the outset with who exactly the ODC planned to place their money.But once the money was not returned, NDC officials are believed to have travelled with ODC officials to South Africa to meet the investor to get their money returned.With the NDC in the process of closing down, it was requested to transfer all funds it had received from the Ministry of Trade to the ODC in July – around the time ODC auditors began questioning the missing investment.The outstanding amounts are believed to have been offset against the investment and outstanding interest – and the NDC now charges that the responsibility for the whole investment lies with the ODC.FOUR INVESTMENTS MADE IN 10 DAYS The Namibian has seen copies of transfer instructions to the bank for the first four instalments from the accounts of the NDC to that of the ODC.They were made within the space of 10 days in June 2003 and were signed by the company’s corporate legal advisor, and the Managing Director-designate.It is believed that they merely implemented instructions from higher up.Finance Permanent Secretary Schlettwein said yesterday that through the Ministry’s representation on the board, it has demanded answers as to exactly what money the NDC transferred to the ODC and whether the move was supported by a board resolution.Until it was satisfied with the answers, the dissolution of the company, slated for December, would be affected, he said.The Minister of Finance is expected to dissolve the company and transfer all its assets to the recently established Development Bank of Namibia.Schlettwein said this would not be able to happen until the value of the corporation’s liabilities and assets had been established – including the investment in question.In December, Cabinet instructed that the NDC transfer N$20 million of its cash reserves to the DBN.The Namibian understands that although this money was reflected in the NDC’s books, it was not available for transfer when the order was made.Schlettwein said given that the ODC is a registered company in terms of the Companies Act and not a State institution, the Ministry of Finance had no direct link to the company.Government is, however, the ODC’s majority shareholder and ODC operations are funded with public money.Schlettwein said because it is highly probable that the investment was made from State funds, the Ministry of Finance would be demanding answers on whether the board had acted responsibly regarding the deal.”The Ministry of Finance has to be worried and concerned in any event where public funds are concerned,” he said.* From 2003, the ODC invested more than N$99 million with Great Triangle.Independent investigations by The Namibian have revealed that Great Triangle, although registered in Botswana, has no office there, and that its main contact person and director, Philip Fourie, has a history of alleged attempted fraud.Fourie, in turn, has pinned the responsibility for the ODC transaction on Tertius Theart, who has refused to comment on the issue.A company search in South Africa has revealed that Theart and Fourie serve as directors for 13 companies. Despite being on the skids for years, the NDC somehow scraped together N$55 million it received from the Ministry of Trade and Industry to administer industrial parks and other projects to give to the ODC to invest.The NDC was set up to promote economic growth and developmåent.In total, the NDC made 17 transfers to the ODC between June 20 2003 and January 26 2004 at an interest rate of 19 per cent, The Namibian has learned.All the amounts were supposed to mature on May 31 2004.A source indicated yesterday that the NDC had apparently agreed to place the money with the ODC because it had been led to believe that the ODC had carried out a background check on Great Triangle Investments.But with the Ministry of Trade and Industry – under which both the ODC and NDC fall – providing virtually no feedback on progress in getting the money returned, the Ministry of Finance has now entered the fray.It is demanding answers on the NDC’s transfer of public funds to the ODC.”We need to get to the bottom of this.We are waiting for answers very urgently,” Finance Permanent Secretary Calle Schlettwein said, when approached for comment yesterday.”We need to know where the money is, especially in light of the President’s stance on corruption.We need to get the assurance that we will get that money back,” Schlettwein told The Namibian yesterday.This week was characterised by a flurry of meetings – all in an attempt to get to the bottom of the botched investment with Great Triangle Investments, as questions around the missing millions intensify.On Tuesday, the NDC held a board meeting.The next day the ODC board met.Government officials were also in and out of each other’s offices this week.But both NDC Chairman John Nekwaya and ODC Chairman Gerdus Burmeister have maintained a stony silence, and did not respond to repeated attempts by The Namibian for comment during this week.Nekwaya would only say yesterday that the board planned to meet again – either next week or the week after. He is still said to be on sick leave.THE NDC’S N$55 MILLION However, more information emerged this week about the NDC’s placement of funds with the ODC. Although the ODC never returned the NDC’s money, it paid all the interest due to it until the end of July 2004. The greatest chunk of money the NDC invested was N$16,5 million, which was trans-ferred to the ODC in January last year. Around N$15,7 million of the total amount of N$55,372 million the NDC invested through the ODC came from actual NDC resources. Millions more of the money invested were funds destined for the development of Industrial Parks and for Small and Medium Enterprise projects. The Namibian understands that, as part of its mandate, the NDC was required to invest funds it received from the Ministry of Trade for short terms only and not offshore – so that the funds would be easily available to use for their intended purpose. A source indicated that investment decisions were largely made by the Finance Manager and the Managing Director. Another well-placed source said the NDC and ODC entered into an agreement on the investment, and that the ODC had pledged to guarantee the capital and the interest. It remains unclear whether all the members of the NDC board and management knew from the outset with who exactly the ODC planned to place their money. But once the money was not returned, NDC officials are believed to have travelled with ODC officials to
South Africa to meet the investor to get their money returned. With the NDC in the process of closing down, it was requested to transfer all funds it had received from the Ministry of Trade to the ODC in July – around the time ODC auditors began questioning the missing investment. The outstanding amounts are believed to have been offset against the investment and outstanding interest – and the NDC now charges that the responsibility for the whole investment lies with the ODC. FOUR INVESTMENTS MADE IN 10 DAYS The Namibian has seen copies of transfer instructions to the bank for the first four instalments from the accounts of the NDC to that of the ODC. They were made within the space of 10 days in June 2003 and were signed by the company’s corporate legal advisor, and the Managing Director-designate. It is believed that they merely implemented instructions from higher up. Finance Permanent Secretary Schlettwein said yesterday that through the Ministry’s representation on the board, it has demanded answers as to exactly what money the NDC transferred to the ODC and whether the move was supported by a board resolution. Until it was satisfied with the answers, the dissolution of the company, slated for December, would be affected, he said. The Minister of Finance is expected to dissolve the company and transfer all its assets to the recently established Development Bank of Namibia. Schlettwein said this would not be able to happen until the value of the corporation’s liabilities and assets had been established – including the investment in question. In December, Cabinet instructed that the NDC transfer N$20 million of its cash reserves to the DBN. The Namibian understands that although this money was reflected in the NDC’s books, it was not available for transfer when the order was made. Schlettwein said given that the ODC is a registered company in terms of the Companies Act and not a State institution, the Ministry of Finance had no direct link to the company. Government is, however, the ODC’s majority shareholder and ODC operations are funded with public money. Schlettwein said because it is highly probable that the investment was made from State funds, the Ministry of Finance would be demanding answers on whether the board had acted responsibly regarding the deal. “The Ministry of Finance has to be worried and concerned in any event where public funds are concerned,” he said. * From 2003, the ODC invested more than N$99 million with Great Triangle. Independent investigations by The Namibian have revealed that Great Triangle, although registered in Botswana, has no office there, and that its main contact person and director, Philip Fourie, has a history of alleged attempted fraud. Fourie, in turn, has pinned the responsibility for the ODC transaction on Tertius Theart, who has refused to comment on the issue. A company search in South Africa has revealed that Theart and Fourie serve as directors for 13 companies. Despite being on the skids for years, the NDC somehow scraped together N$55 million it received from the Ministry of Trade and Industry to administer industrial parks and other projects to give to the ODC to invest.The NDC was set up to promote economic growth and developmåent.In total, the NDC made 17 transfers to the ODC between June 20 2003 and January 26 2004 at an interest rate of 19 per cent, The Namibian has learned.All the amounts were supposed to mature on May 31 2004.A source indicated yesterday that the NDC had apparently agreed to place the money with the ODC because it had been led to believe that the ODC had carried out a background check on Great Triangle Investments. But with the Ministry of Trade and Industry – under which both the ODC and NDC fall – providing virtually no feedback on progress in getting the money returned, the Ministry of Finance has now entered the fray.It is demanding answers on the NDC’s transfer of public funds to the ODC.”We need to get to the bottom of this.We are waiting for answers very urgently,” Finance Permanent Secretary Calle Schlettwein said, when approached for comment yesterday.”We need to know where the money is, especially in light of the President’s stance on corruption.We need to get the assurance that we will get that money back,” Schlettwein told The Namibian yesterday.This week was characterised by a flurry of meetings – all in an attempt to get to the bottom of the botched investment with Great Triangle Investments, as questions around the missing millions intensify.On Tuesday, the NDC held a board meeting.The next day the ODC board met.Government officials were also in and out of each other’s offices this week.But both NDC Chairman John Nekwaya and ODC Chairman Gerdus Burmeister have maintained a stony silence, and did not respond to repeated attempts by The Namibian for comment during this week.Nekwaya would only say yesterday that the board planned to meet again – either next week or the week after. He is still said to be on sick leave.